Toronto home prices steady at year end
Average Toronto home resale prices remained steady during early December. The average selling price of $471,862 was about 3% above the comparable figure from 2011. Prices for townhouses and semis actually increased more in the 416 area, while prices for detached houses increased more in the 905 zone.
The number of homes changing hands this fall has been consistently lower than during last fall. Taken as a whole, the 2012 home sales statistics will be consistent with recent years.
Rates to stay low
Media reports indicate that the Bank of Canada will continue to maintain record low interest rates for much of 2013. Mortgage lenders are currently offering discounted rates close to 3% to qualified borrowers. Buyers will be poised to act when a larger number of properties come on the market in the new year.
More price increases in 2013
Buyers frequently overlook one of the characteristics of a housing market like Toronto’s, which is that a very large market is actually made up of unique, individual transactions between a seller and a buyer. This fact helps explain why prices often tend to go up during the times when more properties are available, but drop when fewer properties are for sale. Since home owners generally control their decisions about when to sell, housing inventories do not behave like typical commodities in other markets.
We can expect another round of increasing home prices in 2013. Family homes in Toronto’s inner suburbs, as well as in the 905 belt, look increasingly attractive to buyers looking for larger properties. Downtown homes and condos have strong appeal to buyers who want to be part of the vibrant scene in the city core. Builders and renovators are doing their utmost to provide more options to potential buyers in every part of the GTA.
If you’re considering a move in the next year, we’d be glad to help you plan out your options. You can email us, or feel free to call James and Joanne at 416-483-8000.